Alibaba Group Holding Limited

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's September quarter 2025 results conference call. At this time, all participants are on listen-only mode. After management's prepared remarks, there will be a Q&A session. I would now like to turn the call over to Lydia Liu, head of investor relations of Alibaba Group. Please go ahead.

Thank you. Good day, everyone. Welcome to our September quarter 2025 earnings conference call. With me today from Alibaba are Zhou Cai, Chairman, Eddie Wu, Chief Executive Officer, Toby Xu, Chief Financial Officer, Jiang Fan, Chief Executive Officer of Alibaba eCommerce Business Group. I would like to remind you that this call is also being webcast on our corporate website. A replay of the call will be available on our website later today. Just a few forward-looking statements before we begin today. Today's discussions may contain forward-looking statements, particularly statements about our business and financial results that are subject to risk and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor statements that appear in our press release and investor presentation provided today. Please note that certain financial measures that we use on this call are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. With that, I'm going to turn the call over to Eddie.

Welcome to Alibaba Group's quarterly earnings call. Over the past quarter, Alibaba delivered steady and healthy growth. Our total revenue increased 15% year-over-year, excluding SunArt and InTime. Our continued investment in core businesses is yielding results, with China e-commerce, CMR, growing 10% and cloud intelligence revenue rising 34%. Let me walk you through the latest developments across our AI plus cloud and consumption businesses. Sustained strong demand for AI and rising usage of public cloud drove Alibaba's cloud's 34% revenue growth this quarter, while revenue from external customers accelerated by 29%. AI-related products continued to post triple-digit year-over-year growth for the ninth consecutive quarter. In the cloud computing market, two major trends are becoming increasingly apparent. First, as AI applications scale, more developers and enterprise customers are choosing vendors with full-stack AI technology portfolios. Second, customers are deepening and broadening their use of AI, which is significantly increasing demand for compute, storage and other traditional cloud services. Together, these forces are accelerating revenue growth driven by external customer demand. This quarter, we continued to strengthen our full-stack AI capabilities, spanning high-performance AI infrastructure, foundation models and AI development frameworks. Our flagship model, QN3 Max, ranks among the global leaders in benchmarks for real-world coding tasks, agent tool use capabilities, and other specialized valuations. Our full-stack AI capabilities are now a defining competitive advantage. Alibaba Cloud is gaining market share across multiple segments. In the hybrid cloud market, Alibaba Cloud has become a key player, growing more than 20% year over year, outpacing the industry and steadily expanding market share. Our financial cloud business is also growing faster than the market, with market share continuing to rise. In China's AI cloud market, we're also the clear leader with a market share larger than the combined total of the second to fourth largest providers. Recently, businesses such as the NBA, Marriott, China UnionPay, and Bosch have partnered with Alibaba Cloud on AI initiatives. Last week, we officially launched the Q1 app, which aims to be the most advanced personal AI assistant powered by our latest models. In the first week of its public beta, The Q1 app has already surpassed 10 million in new downloads. The launch of the Q1 app marks Alibaba's commitment to both AI for enterprise and AI for consumer. In enterprise-focused AI, our goal is to build a world-leading full-stack AI provider serving businesses across all industries. For consumers, we aim to build native AI-first applications by leveraging our best-in-class models and Alibaba's extensive ecosystem. On the one hand, QN3 Max's intelligence and world-class tool use capabilities, combined with Alibaba's rich consumer and lifestyle use cases, contributed to exceptional user retention in the QN apps beta release. We believe this is the right moment to scale our consumer AI efforts. On the other hand, the synergy between AI and the broader Alibaba ecosystem is a powerful multiplier. Alibaba is the only company in China with both a leading large model and extensive lifestyle and commerce use cases. QN will gradually integrate e-commerce, map navigation, local services and more, becoming an AI-powered entry point for everyday life. With AI innovation and ecosystem collaboration reinforcing each other, we're confident in our ability to deliver substantial user value. In consumption, we continue to deepen collaboration across businesses, and the benefits of our large integrated platform are becoming increasingly evident. This quarter, China e-commerce CMR grew 10%. Our quick commerce business saw significant improvement in unit economics with greater fulfillment efficiency, stronger user retention, higher average order value, and expanding scale. The growth of quick commerce business contributed to rapid growth in Tableau App's monthly active consumers and supported CMR expansions. Brands on Tmall are also accelerating their adoption of on-demand retail. As of October 31, approximately 3,500 brands on Tmall have onboarded their offline stores to our QuickCommerce business. Going forward, we will further enhance synergy between QuickCommerce and the broader Alibaba ecosystem, continue improving unit economics, and meet consumers' fast-growing demand for immediate access to diverse products and services. On October 1, AMAP's daily active users reached a historical high of 360 million. In September, we launched the AMAP Street Stars feature, which has significantly boosted user engagement. In October, AMAP Street Stars averaged more than 70 million daily active users, with average daily user reviews more than triple the amount of the same period last year, indicating strong future growth potential. AMAP Streetstars has built a trust-based rating system for local offline services using user-consented metrics, such as the user's credit rating. We believe that enhancing consumer trust is essential to strengthening consumer confidence, enabling merchants to focus on operations while giving consumers greater peace of mind, supporting the healthy and sustainable growth of the local offline services sector. Looking ahead, we'll continue investing decisively in our two core strategic pillars, AI plus cloud and consumption. We will advance both enterprise and consumer-focused AI, unlock deeper synergies across Alibaba's businesses, and use these engines to drive Alibaba's long-term growth and carry the company to the next level. Thank you. I will now hand over to Toby.